Regulations governing landlord-tenant relationships, approved by the Real Estate General Authority, set out a clear framework for rewarding those who report violations.
The regulations, published in the Umm Al-Qura newspaper, include all employees of the relevant authorities and tenants, who are required to submit a report through approved electronic channels and according to a specific format, including the data of the informant and means of communication, if related to existing violations or potential incidents, and will be subject to investigation and verification before approving the right to a reward payable in an amount not exceeding 20% of the fines collected.
Compensation is applicable for cases such as failure to register a rental agreement in an electronic network for rental services or registration at a lower price than its actual value, failure to register or correct tenant data within a certain period of time and increasing the rent above the normal rent for residential or commercial real estate, or increasing the rent when renting to a new tenant in violation.
The fine amount is divided into four categories: 500,000 riyals or more, 100,000 to 500,000 riyals, 50,000 to 100,000 riyals, and less than 50,000 riyals. The percentage of the reward to the total fine obtained is determined based on the total score (1-12 points), depending on the evaluation level of the report and the approved criteria, increasing to 5% for a total score of 5-7 points, 10% for a total score of 8-10 points, and 20% for a total score of 11-12 points.
The regulatory framework governing landlord-tenant relations approved by the Directorate General of Real Estate established a clear framework for paying rewards to those who report violations.
The regulations, published in the Umm Al Qura newspaper, include all employees of relevant authorities and tenants, who are required to submit reports in connection with existing violations or potential incidents, through approved electronic channels, according to a specific form containing information and contact details of the reporter, which will be investigated and verified before eligibility for the reward is approved, and will be paid at a rate not exceeding 20% of the fines collected.
Cases eligible for benefits include failure to register the rental agreement in the electronic rental service network or registration at a lower price than the actual price, increasing the rent by more than the legal percentage for residential or commercial real estate, renting to a new tenant in violation, and refusal to register or change tenant data within a certain period of time.
The fine amount is divided into four categories: more than 500,000 riyals, 100,000 riyals or more but less than 500,000 riyals, 50,000 riyals or more but less than 100,000 riyals, and less than 50,000 riyals. The mechanism for determining the reward percentage from the total fines collected is based on total points (1-12 points). Depending on the evaluation level and approval criteria of the report, the award rate will be 5% if the total score is 5-7 points, 10% if the total score is 8-10 points, and 20% if the total score is 11-12 points.
